U.S. Luxury Spending Cools as the Loonie Slides: What It Means for Canadian Jewellery Buyers
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Two very different pictures of the jewellery world came out this week. South of the border, wealthy shoppers are spending less on luxury. Here in Canada, jewellery stores are having a surprisingly good year, even as the Canadian dollar slips to its weakest level in a year and a half. Here is what is going on, in plain language.
American luxury shoppers are pulling back
According to credit card data analysed by Citi and reported by Reuters on October 6, U.S. luxury spending fell 6% in September compared with a year earlier. It was the third month in a row of decline, after drops of 4% in both July and August. Leather goods and ready-to-wear actually improved a little in September, but watches and luxury jewellery weakened further.
Analysts point to several worries at once: uncertainty ahead of the November 3 U.S. midterm elections, continued weakness in China, the economic fallout of the Iran war, and rising U.S. Treasury yields and mortgage rates. Citi still expects brands that serve the very top of the market to hold up relatively well, helped by strong stock-market wealth.
The loonie is on the defensive
The Canadian dollar touched C$1.4293 per U.S. dollar on Monday, October 5, its lowest point in 18 months, and was trading around C$1.4274 on Tuesday. That is roughly 70 U.S. cents. Broad U.S. dollar strength, higher U.S. bond yields, a soft Canadian services sector and stalled Canada–U.S. trade talks are all weighing on it.
Trade is a big part of that story. Since late August, the United States has applied a 50% tariff to many Canadian goods. The list published in July includes loose polished diamonds, gold necklaces and chains, and several types of silver and plated jewellery. Rough diamonds were not on it. Canada's August trade surplus jumped to C$4.2 billion, which economists linked in part to exporters rushing shipments out before the tariffs took effect.
Meanwhile, Canadians keep shopping for jewellery
At home, the numbers look brighter. Statistics Canada data cited by Retail Insider on October 6 show sales at jewellery, luggage and leather goods retailers were up 15.9% in July compared with a year earlier. Montreal's own Birks reported fiscal 2026 sales up 15.5%, and Michael Hill's Canadian revenue rose 7.3% to C$174.2 million. In other words, Canadian shoppers are still marking life's big moments, even if Americans are being more careful.
The weak loonie matters for anyone buying here. Gold and diamonds are priced around the world in U.S. dollars, so when the Canadian dollar falls, the same gram of gold or the same stone costs more in Canadian dollars, even if its U.S. price has not moved.
Currency swings and tariffs are things none of us control, but they are a good reason to plan rather than rush. If you are thinking about an engagement ring or a gift for the holidays, it helps to know your options early: metal weight, stone size and natural or lab-grown all shift the final price. We are happy to walk you through the choices and give you a clear quote in Canadian dollars. Book a relaxed consultation with us.
Sources: Reuters via Investing.com (Oct. 6, 2026) · Yahoo Finance (Oct. 6, 2026) · KnightsbridgeFX (Oct. 6, 2026) · Retail Insider (Oct. 6, 2026) · National Jeweler (July 22, 2026) · Rapaport (July 23, 2026). Prices in U.S. dollars unless stated.
